M/s Unicorn Medident Pvt. Ltd. vs. M/s Arora Promoters Private Limited
Background
The decree holder sought to enforce an arbitral award against the judgment debtor, but the record showed that the stamp duty on the award had been deposited more than 30 days after the award, which did not comply with the Indian Stamp Act as interpreted by an earlier Delhi High Court ruling.
Decision Breakdown
Because the delayed stamp duty payment was not in line with the applicable legal scheme, counsel for the enforcement petitioner sought leave to withdraw the petition, to be re-filed once the stamp duty issue was cured. The Court granted this and dismissed the petition as withdrawn, with liberty to re-file.
Lesson Learnt
Timely and correct stamping of an arbitral award is a strict procedural requirement in Delhi, even a delay of a few weeks in paying stamp duty can force a party seeking enforcement to withdraw and start the process over.